Back at you: County files a claim against Marina Coast Water District over failed desal plant

Firing back, Monterey County has filed a claim against the Marina Coast Water District alleging it was district officials' fault the regional desalination project fell apart, primarily because of "secret agreements" with former county water board member Steve Collins.

Filed with Marina Coast on Monday, the claim calls out the water district's general manager, Jim Heitzman; former legal counsel Lloyd Lowrey; and all five current board members by name. It asks for unspecified punitive damages.

The claim accuses district officials of conspiracy, fraud, bribery of a public official and violation of conflict of interest laws in an attempt to gain an advantage with regard to the regional project. It alleges officials engaged in "a continuous pattern of unlawful and deceptive conduct, planned and orchestrated" by them and their co-conspirators to "profit from, interfere with and ultimately frustrate" the regional project.

Their actions damaged the county, its water resources agency and county residents by delaying the development of a new water supply, squandering millions of dollars and increasing the cost of a solution, the claim said.

It was filed a little more than two weeks after Marina Coast filed a claim against the county, alleging it was to blame for the regional project's demise.

County Counsel Charles McKee said the county decided it was "the right time to assert these claims." McKee said county officials had been devoting their attention to finding a new water supply for the Peninsula, which is facing a state-ordered cutback in pumping from the Carmel River, and resolving any remaining issues involving the failed regional project.

McKee said the claim "doesn't mean we've shut the door on a resolution with anybody."

Heitzman declined to comment on the claim.

The claim alleges district officials entered into secret agreements with Collins while he was playing a key role on the regional project contracts in an attempt to "influence (him), secure his favor and manipulate the public process."

District officials paid Collins for his influence at closed-session meetings of the county Board of Supervisors and the water resources agency board, where he had access to privileged information, and during public meetings where the supervisors and water board considered and approved, at his urging, the project agreements, according to the claim.

Marina Coast officials obtained the agency's confidential, internal correspondence and information regarding the county's positions on the project from Collins and others, and used them to "advance their undisclosed, secret interests" in the project, thus putting the county and its residents at a disadvantage, the claim alleged.

The district never disclosed its relationship with Collins and funneled money to him through RMC Water and Environment in an effort to keep it on the down-low, according to the claim.

In addition, the claim blasts Marina Coast for not dealing in good faith on the project, continuing with "prolonged, unnecessary and wasteful" litigation with the Ag Land Trust, and failing to "mediate disputes in good faith with no realistic expectation of resolution."

The county, Marina Coast and California American Water were partners in the $400 million regional project, but the partnership began to fall apart after it was revealed that Collins was being paid $160,000 by RMC for work he had done on the project while a public official.

Collins is facing felony conflict of interest charges and has sued the county, alleging Supervisors Lou Calcagno, Dave Potter and other county officials knew about and encouraged his efforts on behalf of the project and his relationship with RMC.

Cal Am backed out of the project in January after months of unsuccessful negotiations among the partners, and submitted a new water supply proposal to the state Public Utilities Commission three months later.